Medicare Market Shares of Mail Order Diabetes Test Strips From April to June 2016

The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 requires CMS to phase in a Competitive Bidding Program for durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS). Under this program, suppliers compete to become Medicare contract suppliers for selected DMEPOS items, including diabetes test strips provided via mail order. Additionally, the Medicare Improvements for Patients and Providers Act (MIPPA) requires mail order suppliers to demonstrate in their bids that they can provide at least 50 percent, by volume, of the types of diabetes test strips provided to Medicare beneficiaries. MIPPA requires OIG to determine the market shares of the types of diabetes test strips before each round of competitive bidding. CMS uses OIG's data to help ensure contracted suppliers' bids adhere to the 50-percent rule.